Competition - other business offering a similar service/product
Product range - A range of similar products made by a business, such as the food offerings in KFC
Brand - A named product which customers associate or identify with
Brand image - the idea/image that customers have in their mind about the brand
Added Value - the increased worth that a business creates for a product
USP (Unique Selling Point) - a characteristic of a product that makes it different from others in the market
Information/Discussion (10 mins)
Analysing the competition
A new business should look at the following points and analyse the offerings across their competitors
Product range
Quality
Design
Selling experience
After-sales service
Price
Brand image
Suppliers
Strengths & Weaknesses From the analysis of the competition a business owner should be able to identify their strengths and weaknesses - these will help the business owner see any gaps or saturation in the market.
Task (15 mins)
Identify the strengths & weaknesses of McDonalds & Islanders
Write them on 2 lists...........
Information/Discussion (10 mins)
Added Value
Any business needs to add value to their product or service. The source of the added value can vary -
Quality
Design & formula
Convenience
Speed & quality of service
Branding
Unique Selling Point
The importance of added value
It is the added value that becomes the profit margin - the difference between the cost of the product/service and the selling price.
Task (10 mins)
Identify the added value in the following brands
Thorntons Chocolates
McDonalds
The AA
Nike
Amazon
Plenary (5 mins)
What sort of Added value would Starbucks bring to Canvey Island?
Business Opportunity - Competition - Added Value
Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5 Lesson 6
Lesson Objectives
Starter (5 minutes)
Write a definition of competition on the wallKeywords (5 mins)
Competition - other business offering a similar service/productProduct range - A range of similar products made by a business, such as the food offerings in KFC
Brand - A named product which customers associate or identify with
Brand image - the idea/image that customers have in their mind about the brand
Added Value - the increased worth that a business creates for a product
USP (Unique Selling Point) - a characteristic of a product that makes it different from others in the market
Information/Discussion (10 mins)
Analysing the competition
A new business should look at the following points and analyse the offerings across their competitorsStrengths & Weaknesses
From the analysis of the competition a business owner should be able to identify their strengths and weaknesses - these will help the business owner see any gaps or saturation in the market.
Task (15 mins)
Identify the strengths & weaknesses of McDonalds & Islanders
Write them on 2 lists...........
Information/Discussion (10 mins)
Added Value
Any business needs to add value to their product or service. The source of the added value can vary -
The importance of added value
It is the added value that becomes the profit margin - the difference between the cost of the product/service and the selling price.
Task (10 mins)
Identify the added value in the following brandsPlenary (5 mins)
What sort of Added value would Starbucks bring to Canvey Island?